Yield of 4.25 per cent for initial five and a half year period
THIS MEDIA RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
HALIFAX, Jan. 30, 2013 /CNW/ - Bell Aliant Inc. ("Bell Aliant") (TSX:
BA) announced today that its subsidiary Bell Aliant Preferred Equity
Inc. (the "Company") will be issuing 8,000,000 Cumulative 5-Year Rate
Reset Preferred Shares, Series E (the "Series E Preferred Shares"), at
a price of $25.00 per Series E Preferred Share, for aggregate gross
proceeds of $200 million on a bought-deal basis to a syndicate of
underwriters led by Scotiabank, TD Securities Inc., and CIBC.
The underwriters have been granted an over-allotment option to purchase
an additional 1,200,000 Series E Preferred Shares at the offering
price. Should the over-allotment option be fully exercised, the total
gross proceeds of the Series E Preferred Share offering will be $230
The Series E Preferred Shares will pay cumulative dividends of $1.0625
per share per annum, yielding 4.25 per cent, payable quarterly if, as
and when declared by the Company's board of directors (with the first
quarterly dividend to be paid on June 30, 2013), for the initial five
and a half year period ending September 30, 2018. The dividend rate
will be reset on September 30, 2018 and every five years thereafter at
a rate equal to the five-year Government of Canada bond yield plus 2.64
per cent. The Series E Preferred Shares will be redeemable by the
issuer on or after September 30, 2018, in accordance with their terms.
Holders of the Series E Preferred Shares will have the right, at their
option, to convert their shares into Cumulative Floating Rate Preferred
Shares, Series F, (the "Series F Preferred Shares") subject to certain
conditions, on September 30, 2018 and on September 30 every five years
thereafter. Holders of the Series F Preferred Shares will be entitled
to receive cumulative quarterly floating dividends at a rate equal to
the three-month Government of Canada Treasury Bill yield plus 2.64 per
cent, if, as and when declared by the Company's board of directors.
The Series E Preferred Shares will be offered for sale to the public in
each of the provinces and territories of Canada pursuant to a short
form prospectus to be filed with Canadian securities regulatory
authorities in all Canadian provinces and territories. The offering is
scheduled to close on or about February 14, 2013, subject to certain
conditions, including obtaining all necessary regulatory approvals.
The net proceeds of this offering will be used for repayment of short
term debt and general corporate purposes.
The Series E Preferred Shares have not been, nor will be, registered
under the United States Securities Act of 1933, as amended, or any
state securities laws and may not be offered or sold in the United
States or to U.S. persons absent registration or applicable exemption
from the registration requirement of such Act and applicable state
securities laws. This news release shall not constitute an offer to
sell, or the solicitation of an offer to buy, nor shall there be any
sale of these securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to qualification under the
securities laws of any such jurisdiction.
This news release contains forward-looking statements concerning the
expected issuance and sale of Preferred Shares and the use of proceeds
from the issuance. These statements are based on the current terms of
the offering agreement and management's expectations at January 30,
2013, and are subject to change after that date. The statements are
subject to important risks and uncertainties, including customary
termination rights and closing conditions. Therefore, actual results
and events may differ materially from these forward-looking statements,
and there can be no assurance that the results or events predicted will
be realized. Except as may be required by Canadian securities laws,
Bell Aliant disclaims any intention and assumes no obligation to update
or revise any forward-looking statement even if new information becomes
available, as a result of future events or for any other reason.
About Bell Aliant
Bell Aliant Inc. (TSX: BA) is one of North America's largest regional
communications providers and the first company in Canada to cover an
entire city with fibre-to-the-home (FTTH) technology with its FibreOP™ services. Through its operating entities, Bell Aliant serves customers
in six Canadian provinces with innovative information, communication
and technology services, including voice, data, Internet, video and
value-added business solutions. Bell Aliant's employees deliver the
highest quality customer service, choice and convenience. For more
information, visit www.bellaliant.ca.
SOURCE: BELL ALIANT INC.
For further information:
Sarah Levy MacLeod